Running Estonian company from Thailand

[FridgeMagnet1]

Im an Estonian e resident and have set up a company using Xollo that I’ll be running from Thailand.

Totally legit small consultancy with Wise as a bank account, turnover €5,000. Month.

Im not a tax resident in my home country or in Thailand.

 

So question is, can I pay myself dividends from Estonia to myself in Thailand into my BBL account?  Thailand doesn’t tax on overseas income?
 

Bit lost with all this stuff 

[AlexRich]

My understanding is that Thailand is only interested in overseas income that is brought into Thailand in the same tax year that it has been earned. So if you receive a dividend in June and transfer it to Thailand in July you are technically liable for Thai tax. However, if you transfer the dividend in January the next year you are not liable to Thai taxation. So the timing of transfers is crucial.

[FridgeMagnet1]

1 minute ago, AlexRich said:

My understanding is that Thailand is only interested in overseas income that is brought into Thailand in the same tax year that it has been earned. So if you receive a dividend in June and transfer it to Thailand in July you are technically liable for Thai tax. However, if you transfer the dividend in January the next year you are not liable to Thai taxation. So the timing of transfers is crucial.

Thanks, so I could just transfer it to my BBL, keep records and not have to alert anyone?

(Novice business owner)

[FridgeMagnet1]

Actually I need to talk to an accountant. 
 

cheers 

[Kalorymetr]

Please share your findings, I think this would be kinda legal to avoid paying any income taxes?

[AlexRich]

11 hours ago, FridgeMagnet1 said:

Thanks, so I could just transfer it to my BBL, keep records and not have to alert anyone?

(Novice business owner)

I don’t know what your BBL stands for? I’ll guess it’s your Thai Bank?
 

So I would delay transferring any dividends earned from your business in any given year until the next Thai tax year. Then you are not liable to Thai tax.
 

But I’m intrigued by your assertion that you are not liable to tax in Estonia? If the profits derive from Estonia and you are an Estonian national then I would have thought you were liable? Are you 100% sure about that? 

[Satcommlee]

If you spend more than 180 days a year in Thailand you are a tax resident here.

 

Your dividend payments may be subject to the dual tax treaty with Estonia

http://download.rd.go.th/fileadmin/download/nation/Estonia_e.pdf

 

There is a kind of vague loophole that says dividend income earned in 2021 but remitted in 2022 could be free from tax.

 

It's a minefield, with the OECD pushing on the CRS (Common Reporting System) for Tax which Thailand is now a signatory things could get complicated in the future but your income is not so high to become a priority.

 

You do need a tax specialist with International experience.

[FridgeMagnet1]

1 hour ago, AlexRich said:

I don’t know what your BBL stands for? I’ll guess it’s your Thai Bank?
 

So I would delay transferring any dividends earned from your business in any given year until the next Thai tax year. Then you are not liable to Thai tax.
 

But I’m intrigued by your assertion that you are not liable to tax in Estonia? If the profits derive from Estonia and you are an Estonian national then I would have thought you were liable? Are you 100% sure about that? 

I’m not an Estonian national. I’m an e-resident 

[khunPer]

13 hours ago, FridgeMagnet1 said:

Thailand doesn’t tax on overseas income?

If you stay in Thailand more than 180 days within a year you are fully tax resident of Thailand.

 

Thailand income tax all foreign income transferred into Thailand during the same calendar year as the foreign income is earned.

 

You shall check the Estonian taxation rules for you Estonian registered company, hereunder eventual withholding tax on dividends.

 

Thereafter you shall check if there is a Double Taxation Agreement (DTA) between Estonia and Thailand, and what that agreement says about dividend taxation.

[chalawaan]

13 hours ago, FridgeMagnet1 said:

Actually I need to talk to an accountant. 

cheers 

Yes, these days it is near impossible for a small-time operator to avoid tax, and the repercussions if caught can be severe, ask the dutchman who dodged tax on his cannabis coffee-shop chain in NL and got 100 years jail in Thailand! 

It was finally sorted out with his deportation to a dutch jail, after several horrendous years, I bet he wished he had just done the right thing. 

 

Edited August 24, 2021 by chalawaan

[lordblackwhite]

Hello, I was wondering if you have any update about this?

 

I'm looking to create an Estonian company (as my business operates mainly in Europe) and I will be living in Thailand for some years (so I will be personal tax resident in Thailand). 

 

Does this make sense? Also, if I pay me as "regular salary", is it possible I pay 0% taxes on Estonia. 

 

So, I'll just pay personal taxes in thailand from my personal income. Anybody is doing something similar?

 

Thank you!

 

Edited February 8, 2022 by lordblackwhite